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6. Suppose you work for a data processing company who needs a new supercomputer now. Your company can either buy it for $400,000 or lease

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6. Suppose you work for a data processing company who needs a new supercomputer now. Your company can either buy it for $400,000 or lease it from computer leasing company through an operating lease. The maintenance will be provided by the leasing company. Your company will not incur any other costs except the lease payment, but the annual mainatnce will cost the leasing company $25,000 per year for four years. The lease terms require your company to make four annual payments at the begging of each year. The computer could be deprecated for tax purposes straight-line over four years and it will have no residual value at the end of year 4. The interest rate is 12%. Suppose the tax rate paid by your company is 21% but the leasing company pays only 15% tax due to carried over losses from their previously operation A. What is the pre-tax lease payment amount that will help the leasing company break-even within 4 years if it requires 8% return? B. What is the NPV of the lease for your company if the annual prepaid lease payment is S150,000? C. What is the NPV of the lease for the leasing company if the annual prepaid lease payment is $150,000

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